Correlation Between AST SpaceMobile and Indie Semiconductor

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Can any of the company-specific risk be diversified away by investing in both AST SpaceMobile and Indie Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AST SpaceMobile and Indie Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AST SpaceMobile and Indie Semiconductor Warrant, you can compare the effects of market volatilities on AST SpaceMobile and Indie Semiconductor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AST SpaceMobile with a short position of Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST SpaceMobile and Indie Semiconductor.

Diversification Opportunities for AST SpaceMobile and Indie Semiconductor

0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between AST and Indie is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and Indie Semiconductor Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indie Semiconductor and AST SpaceMobile is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AST SpaceMobile are associated (or correlated) with Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indie Semiconductor has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and Indie Semiconductor go up and down completely randomly.

Pair Corralation between AST SpaceMobile and Indie Semiconductor

If you would invest  215.00  in Indie Semiconductor Warrant on August 28, 2024 and sell it today you would earn a total of  0.00  from holding Indie Semiconductor Warrant or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AST SpaceMobile  vs.  Indie Semiconductor Warrant

 Performance 
       Timeline  
AST SpaceMobile 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days AST SpaceMobile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
Indie Semiconductor 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Indie Semiconductor Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, Indie Semiconductor is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

AST SpaceMobile and Indie Semiconductor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AST SpaceMobile and Indie Semiconductor

The main advantage of trading using opposite AST SpaceMobile and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST SpaceMobile position performs unexpectedly, Indie Semiconductor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Indie Semiconductor will offset losses from the drop in Indie Semiconductor's long position.
The idea behind AST SpaceMobile and Indie Semiconductor Warrant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

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